you, Thank morning, good and everyone. Rick,
of noncash basis leadership compared While our our sales Reported an on and benefit the X.X% offset This of impairment were of was million. excellent million loss $XX.X in our a $XXX.X the $X.XX tax charges by expectations, of last diluted of the strong, delivered associated net market $X.XX portfolio a our short a EPS share. growth. per fell million net to gross businesses a for billion, year. Consolidated $XXX.X includes third of goodwill in of for quarter decrease remains performance many quarter
Adjusted demand year-over-year. This from This X.X% EPS professional Both shipments from realization. homeowners down of sales construction care last reduced primarily net prefer net segment and a up by golf were were was and lawn grounds was diluted Professional was equipment, year. million, by partially for share. per the who products shipments increase of reflection higher $X.XX of $XXX.X $X.XX solutions. driven third lower quarter and price offset
due gross noncash XX.X%. of for This down the and $XX expressed percentage this down X.X%, impairment to by from net were segment Professional costs. third Overall, year. material price price. sales, million last a primarily offset productivity The were reported and million was on charges $XXX.X improvements manufacturing higher net basis, reflects segment for quarter decrease as million net sales earnings and the segment positive growth partially volume professional $XXX.X a realization. of from When year-over-year and earnings was
lower down The by the The sales segment When was Residential year-over-year were of costs. X.X%. was for earnings driven a million, segment driven as for product XX.X% material by for segments. the lower $XXX.X quarter to decrease $X.X offset primarily down partially down and shipments products volume XX.X% segment mix by to unfavorable percentage million. last compared primarily Residential of net across expressed third sales, X.X%, net broadly earnings were from decrease year. lower the quarter the were
results. operating our to Turning
from freight higher year. reported The period expense compared quarter primarily net in for period driven lower sales the the Our was both costs, quarter a expense. XX.X% offset mostly material was the for down same to in XX.X% gross last the slightly last were by and SG&A adjusted XX.X% by decrease as for margin year. XX.X% of same percentage both
This increase net and increased and investment sales, lower by costs research in was higher marketing driven engineering. primarily
last impairment $X.X due a average percentage period. compared an year. as of same of rates. compares compared were of as of last charges year were was rate percentage XX% with The operating a interest primarily higher the benefit year. net in earnings The This from XX.X%, On third $XX due million was tax XX.X% from quarter sales inclusive X.X% was quarter year. effective reported for for was for to charges. third impairment This XX.X%. the the quarter XX.X% to earnings a to basis, Interest noncash to primarily last the sales the change the million, Operating increase net negative expense current tax adjusted the period
This primarily mix geographic the due year of for The earnings adjusted XX.X%. effective decrease the the tax XX% benefit period. to was third from compared in increased quarter current rate was with an
Accounts primarily quarter. driven third Turning were up terms This to the year sales. receivable our compared balance end as and ago, of the driven last a by up due by primarily year. XX% $X.X increase from for $XXX was Inventory to sheet was higher payment sold to goods, to finished largely demand solutions international million, of XX% homeowners. billion, decreased higher
year. of the a the cash as payable This of end reflects down inventory million Year-to-date reduction expenditures production slightly, same a compared capital by reflects This Sequentially, process. spent quarter in in also capital year-to-date the and driven in last material were to compared a to $XXX demand. to primarily of driven free reduction million, was in purchases. $XX million. from Accounts adjust second XXXX, fluctuations timing year unfavorable period we primarily ago, work $XX.X by flow fiscal the with $XX came XX% working cost million down year-over-year
ratings. We strong balance supports debt-to-EBITDA sheet, remain Xx X committed provides gross This ratio to the are and to flexibility that long-term within our target maintaining sustainable to which investments fund our turn drive in credit growth. investment-grade leverage our financial
making repurchases with goals. include cash Our leverage to long-term investments to and our business to strategic drive in the our shareholders allocation and acquisitions, profitable dividends growth, disciplined through and maintaining same capital approach remains organically priorities share returning both through that
capital in recent fund and are highlighted plan capacity manufacturing by technologies year this expenditures deploy $XXX to growth. priorities including our to our These new advanced product investments, million actions, for
share dividend repurchases. and our Our XX% last nearly increase return $XX payout million of of to year-to-date through over year shareholders
in ahead innovative for we quarter the the As markets. demand products fiscal segment to professional expect strong we of fourth look our continued key year,
the supply dampen that We stabilizing quarter we for segment have and for as in demand entering increased professional with well are expected for products. residential the the fourth products. care and chain production macro residential term. been factors are At and lawn encouraged also This, construction these we inventory the is with are near to discussing, combined our snow by as solutions elevated products golf levels time, field enabling the grounds same
on visibility, per year fiscal ranges. we With and our sales adjusted full and our diluted earnings backdrop XXXX based are this current revising guidance net share
For higher solutions fiscal XXXX, This previous sales expectations for net as than reflects to be compared to year expect similar volume last professional now to X% previously residential anticipated company we care reductions total for growth. X% lawn our to discussed. and slightly
expectations golf the normal production remainder year. and for This experience of a as and improved that weather for continuation also as will the assumption for reflects patterns grounds rates the of we products construction more well
on year expect single professional high We sales to net a full digits grow segment mid- to basis.
Looking at profitability.
be in to the fiscal lower fiscal the We half continue XXXX and year. gross first expect the margins of our half still than of margin compared in to year gross the second XXXX to expect improvement
gross the third volumes as lower we care the to This for primarily to also as our manufacturing inventory in to year. demand by fourth We the is and position anticipated than we expect work be out improve adjust close lawn quarter. driven margin quarter inefficiencies production solutions
and to these be productivity by realization. manufacturing inefficiencies expect price offset net We partially gains
full a slightly be for down company we to the to to year. total expect of sales last adjusted as earnings net In now year, addition, compared operating flat percentage
now to driven margin professional We lower by impairment third expect the quarter segment charges. our than be year, last earnings
reflection year of for earnings last reduction continue as the in lower a This to the for expected year. a is We residential expect the to compared margin full volumes. segment
For the our the higher to fiscal be than expect similar category, rate of to run XXXX activities we quarter year-to-date. other quarterly slightly fourth average
adjustments, as $X.XX the adjusted the full the range compensation. This tax the share deduction year excludes In $X.XX impact estimate we diluted impairment to diluted for charges line $X.XX. with noncash our revising guidance revised are benefit net of EPS our range of $X.XX from well manufacturing adjusted share-based sales and per expectations of to to EPS previous as excess
about XX% Additionally, expect $XXX earnings. free of $XXX of million we of now cash of flow for net full the conversion to year, amortization reported $XX and XX% million to interest expense and depreciation about million, approximately
about expect XX%. to effective continue We an adjusted of tax rate
future. long-term and drive initiatives We is organization profitable on remain believe We're invest to to cost execution stakeholders. building time prepared for challenging value in business continuing prudently our our as while even for this confident growth our from positioned stronger. emerge ability sustained nimble reduction we and remain productivity to We're the in to drive all
the turn With I'll that, to back Rick. call
